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Investing.com -- Cantor Fitzgerald LP is attempting to renegotiate its purchase of UBS Group AG’s O’Connor hedge-fund unit following significant losses from the First Brands Group bankruptcy.
The New York investment bank, which reached an agreement to acquire the unit in May, is now discussing the exclusion of O’Connor’s Working Capital Finance group from the deal and seeking an overall price reduction, according to a report from Bloomberg News, citing people familiar with the matter who requested anonymity due to the private nature of the discussions.
The auto-parts supplier First Brands filed for Chapter 11 bankruptcy protection on September 28 after unsuccessful attempts to refinance $6 billion in loans. Court documents revealed that O’Connor had a $116.1 million claim on First Brands related to supply chain finance.
This renegotiation represents the latest development in the ongoing fallout from the First Brands bankruptcy. The financial impact extends beyond Cantor Fitzgerald, potentially affecting its larger New York competitor, Jefferies Financial Group Inc.
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